For the fourth quarter, Trend Micro posted consolidated net sales of
39,692 million Yen (or US $356 million, 111.19JPY = 1USD). The company
posted operating income of 11,629 million Yen (or US $104 million) and
net income attributable to owners of the parent of 10,938 million Yen
(or US $98 million) for the quarter.

For 2016, Trend Micro posted consolidated net sales of 131,936 million
Yen (or US $1,211 million, 108.88JPY=1USD). The company also reported
operating income of 34,360 million Yen (or US $315 million) and net
income attributable to owners of the parent of 24,651 million Yen (or US
$226 million).

“A top priority for Trend Micro in 2016 was to further adapt our threat
defenses to meet the continual shifts in IT infrastructure, riskier user
behavior and stealthier threats such as ransomware and zero-day
exploits,” said Eva Chen, chief executive officer for Trend Micro. “The
release of XGen™ endpoint security in the last quarter provided a
smarter way to blend techniques to protect against both known and
unknown threats. The acquisition of TippingPoint earlier in 2016
reinforced Trend Micro’s leadership in the intrusion prevention system
market, and bolstered our reputation for unmatched enterprise security.
Additionally, we further optimized our solutions for market-leading
partner platforms and applications to ease deployment and management
within the environments that matter most to our customers.”

Based on information currently available to the company, consolidated
net sales for the year ending December 31, 2017 is expected to be
147,300 million Yen (or US $1,339 million, based on an exchange rate of
110JPY = 1USD). Operating income and net income attributable to owners
of the parent are expected to be 37,500 million Yen (or US $340 million)
and 24,600 million Yen (or US $223 million), respectively.

Growth rate figures are calculated from Japanese Yen results. Some
discrepancy may therefore be noted in US Dollar comparisons owing to
fluctuations in currency conversion rates.

Q4 2016 Business Highlights

Trend Micro announced the availability of XGen™
endpoint security. This new offering is powered by the XGen™ blend
of cross-generational threat defense techniques that intelligently
applies the right technology at the right time, resulting in more
effective and efficient protection against a full range of threats.
Trend Micro’s unique approach uses proven methods to quickly identify
benign data and known threats, freeing its advanced techniques, such as
application control, exploit prevention, behavioral analysis and machine
learning, to more quickly and accurately identify unknown threats. Trend
Micro is the first to infuse ‘high-fidelity’ machine learning into its
approach – uniquely analyzing files both before execution and at
runtime, using ‘noise cancellation’ features like census checking and
whitelisting to reduce false positives.

Trend Micro announced its Trend Micro Deep Security as a Service had
been validated as compliant with PCI DSS as a Level 1 Service Provider.
Trend Micro customers have long trusted Deep Security to provide
critical controls required by PCI such as Intrusion Prevention Systems
(IPS), Integrity Monitoring, Anti-malware and more. Recently, the
company underwent a rigorous audit by Coalfire Systems, Inc., an
independent Quality Security Assessor (QSA), which attested that Deep
Security as a Service has been validated as compliant with PCI DSS 3.2.

In addition, Trend Micro announcedthe availability of Trend
Micro Deep Security as a Service on Amazon Web Services (AWS)
Marketplace. Building on a history of innovations, this new Trend Micro
offering enables organizations to combine the benefits of security
software-as-a-service (SaaS) with the convenience of consolidated
payments through their AWS bill. With per-hour pricing for added
protection of Amazon Elastic Compute Cloud (Amazon EC2) instances, Deep
Security as a Service provides customers a fully hosted security
management experience with rapid delivery of innovations. Now, as a PCI
Level 1 Service Provider, Deep Security as a Service complements the
robust security of the AWS Cloud with rapid setup and deployment time—
it only takes seconds to sign up and start securing workloads.

Trend Micro TippingPoint
Next-Generation Intrusion Prevention System (NGIPS) received a
“recommended” rating based on the 2016 NSS
Labs NGIPS test. With an overall score of 99.5 percent, the report
findings reinforce Trend Micro’s leadership in the intrusion prevention
system market and its reputation for unmatched enterprise security.

Trend Micro announced it received the highest score in the Current
Offering category among the fifteen vendors evaluated in “The Forrester
Wave™: Endpoint Security Suites, Q4 2016” report. Trend Micro believes
that being named as a leader by Forrester’s report affirms the merits of
having a complete endpoint protection portfolio and marks yet another
point of independent industry validation of Trend Micro’s technology
leadership.

Trend Micro announced that Trend Micro Zero Day Initiative (ZDI) has
been recognized by Frost & Sullivan as the leading organization
reporting the highest number of verified vulnerabilities in 2015. In the
study, Analysis of GlobalPublic Vulnerability Research
Market, 2015, the global research and consulting organization
confirmed ZDI reported 49.1 percent of all global vulnerabilities last
year.

Trend Micro, recognized as one of the 50
best companies to sell for in the US, is dedicated to fostering a
healthy work environment and providing robust health benefits for all
its employees. Trend Micro has also implemented various initiatives for
new parents to ease these employees back into their work schedules
without affecting the new member of the family. The latest program is
adhering to “Silver” level Mother-Friendly Worksites designated by the
Texas Department of State Health Services. Both Trend Micro worksites in
Irving and Austin, Texas have been awarded the Silver designation.

Awards and Recognitions for Q4 2016

PC Magazine – Trend Micro Maximum Security 2017 receives 4 STARS

Software Magazine named Trend Micro as a Top 500 Global Software Company
for 2016.

Certain statements that are made in this release are forward-looking
statements. These forward-looking statements are based on management's
current assumptions and beliefs in light of the information currently
available to it, but involve known and unknown risks and uncertainties.
Many important factors could cause actual results to differ materially
from those expressed in forward-looking statements. These factors
include:

Difficulties in addressing new virus and other computer security
problems

Timing of new product introductions and lack of market acceptance for
new products

The level of continuing demand for, and timing of sales of, existing
products

Rapid technological change within the antivirus software industry

Changes in customer needs for antivirus software

Existing products and new product introductions by competitors and
pricing of those products

Declining prices for products and services

The effect of future acquisitions on our financial condition and
results of operations

The effect of adverse economic trends on principal markets

The effect of foreign exchange fluctuations on our results of
operations

An increase in the incidence of product returns

The potential lack of attractive investment targets and

Difficulties in successfully executing our investment strategy

About Trend Micro

Trend Micro Incorporated, a global leader in cybersecurity solutions,
helps to make the world safe for exchanging digital information. Our
innovative solutions for consumers, businesses, and governments provide
layered security for data centers, cloud environments, networks and
endpoints. All our products work together to seamlessly share threat
intelligence and provide a connected threat defense with centralized
visibility and control, enabling better, faster protection. With more
than 5,000 employees in over 50 countries and the world’s most advanced
global threat intelligence, Trend Micro enables organizations to secure
their journey to the cloud. For more information, visit www.trendmicro.com.